Hi Dr Dreyer,
We have a property that we have just finished building in Windhoek. I know that in Camps Bay there are various consortiums that own the properties and I need some ideas of good consortiums that we can contact to look at our property. Any suggestions please? Or websites that we can visit.

I’m busy doing the property pro program examples. But I’m stuck on example 2. I can’t seem to get the 80.49% IRR. On the video you said the solutions are in the disc, but at the background. I can’t seem to find the solutions. please help.

Go to the last part where I explain the examples. I will take you step by step through that example. You are also welcome to phone the office during office hours (012 542 4560) so that they can guide you through the example.

I want to find out about the products you sell on the FB Ad platform. What products do you mostly sell and how do you find out about them (meaning how do you know what product to sell?). I want to start as soon as possible.

I love informational products but you can sell almost anything on FaceBook Follow this link to see what you cant sell in their marketplace https://www.facebook.com/policies/commerce
We teach our students the process to develop products. For more info you can contact the office during office hours at 012 542 4560

I ma currently doing fundamentals on your program, since I am registered. so I want to know that before starting property investment or business i should do level one first or I have to start now than on level one I polish my mistake or improve myself?

The reason why I joined the WCU is because I would like to learn more about to buy more properties and to develop in this area of business.

My major concern is though I have bought a flat near to the Central University of Technology 4 years back with the intent to make money in the estate business. However it seems to me that will never make money within the estate/property business.

I bought the flat for R 440 000.00 my repayment/instalment every month is R 5009.00. I have students in there who rents the flat (managed by an agent) and the income that I get a month is R3000.00. My re-payment term is 30 years. My question is how do I buy more properties if I have a bank loan of 30 years?

Was my decision a bad one to buy property in this way through a bank??

Cedric
1) In finance, intrinsic value refers to the value of a company, stock, currency or product determined through fundamental analysis without reference to its market value.
It is also frequently called fundamental value.
It is ordinarily calculated by summing the discounted future income generated by the asset to obtain the present value.

2) I’m only referring to property investment according to the Property Pro Investment Strategy. Although there are other ways to make money with property like flipping etc I see that as gambling and not investing.
In property investments:
Level 1 is the research phase where you use the Property Pro Program to find the right investment property that will outperform your FFGR
Level 2 is where you manage the property to better your growth (Growth drivers) and implement strategies like the stepping up and roll in strategy to increase the growth on your investment.
Level 3 is where you implement systems to manage your portfolio (the property pro investment system is a system that you can use to identify the “right” property)
Level 4 is where you improve your structures (financial structures eg credit loan accounts etc, entity structures like companies and trusts, & tax structures)
Level 5 is where the income you receive from your properties will cover you living expenses (Financially independent)
Level 6 is where the income you receive from your properties is 2X your living expenses (Financially free)
Level 7 is where the income you receive from your properties is 3X your living expenses (Financially rich)

3) I structure the deal (level 4) so that I show the other cost as a credit loan account therefor I include it in the Purchase price and “Market value”

Hello Hannes, i come to realise that on some of the examples that the IRR can go from 280% on the first year to maybe 170% on the fifth year and it continues to decrease so my question is if it was an assesment to a property that i want to invest in,which one of the IRR do i look at and why does the IRR continue to decrease?

I always work on the IRR in year 5.
Redo the course to find out WHY and how I use the 5 year IRR for making investment decisions
You will also learn why the IRR drop from year 1 to 5. It is all in the course… make sure you get it.

I have a fairly good knowledge on excel, don`t have a problem working or learning how to but I have limited knowledge in accounting,

On this video you basically validate the programs’ output assessment value(s) e.g IRR.etc

I figured out how you did the calcs Example 1 and 2 , but for example 2 I`m a bit uncertain.

You have a surplus of R 1000 monthly, IRR of 12.11% and term of 5 years. From my understand based on the calcs for Example 1. you took the Monthly contributions multiplied by 12 months, then used that value to determine the IRR of 12.11% as per program. aso confirming FV.

but for example 2. I assumed you were going to do the same method where the monthly contribution is R 1000 monthly, IRR of 12.11%(same as e.g 1) and term of 5 years,…I was not getting the same values until, the second time I watched the the video. Payed attention to the formula bar for the calculation of FV, I realised that you have Divided the IRR % by 12 and also Multipled the term by 12 to get FV

How does Type1, Type2 affects the FV value.

That where I`m confused Doctor, I don`t pick the reasoning as to why you have done that in that manner.

The short answer is that the IRR is always calculated in years and for that reason you have to change monthly to yearly if you want to compare IRR to compounded growth.
Also the IRR is an iteration calculation which means there are thousands of calculations to get to the closes possible right answer.

Dear Hannes
I am busy with the exercise on calculations & analysis of property on the software. I looked at three properties all with infinate IRR but i am a bit confused with the interpretation of the following variables which are negative for the whole five year period, these variables which are negative are:
– income per month( which i could afford)
– pre tax cash flow (-R16047)
– taxable amount (-R12 547)
-after tax cash flow ( -R 16 047)
I do not understand what does this mean, i viewed the videos again but could not get answers. Please help in clarifying the above

Nomhle
Remember there is a + and a – infinite growth.
When the cashflow is + with a infinite then it is great
When the cashflow is – with a infinite then it is BAD so definitely stay away from that property

Good day. I just want to know, I’m earning a salary & I don’t have many debts. I have a property which is my primary residence. I want to buy at least 3 more properties using my salary & I want to use them for rental income. How do I ensure that I do this properly & to ensure that I avoid being taxed my SARS too much based on my rental income? What’s the most important thing one has to do to make the most of the rental income while being tax compliant?

In 2007 I bought what was supposed to be a property in a gated, secure, access controlled security village called Summerville in Cape Town. At the time there was a gate with security as well as a wall around the complex and later an electric fence.

In about 2010-2011, I discovered that the developer never got permission to have this as a gated community from the City of Cape Town and yet they continued up until this day to sell a lie to people.

We now have a situation where the body corporate has been mismanaged to such an extent that it is in over R 5 million rand in debt. Over 400 people are paying levies for terrible services. A group of about 60 owners have joined up and have been trying to get to High Court to sort it out legally.

The HOA is saying that the joining was “voluntary” and as we signed that we are now liable for levies. They intimidate and take people to court and the entire complex is becoming a mess.

At a very high level, have you ever heard of something like this and is going to court the only way to contest this?

We are just average people who are now caught up in what I believe is a lie and a scam.

Am currently unemployed so i decided to start a business but i don’t get a consistent income to afford to attend your courses so can you give me an advise on the things i should do to generate an income so that i can afford to attend your courses ?

Dear George King
I am a student of Hannes Dreyer and although I did not attend a course for a long time, your enquiry has lured me to respond, in a good way of course. I am very much interested in marketing, branding, business models and sales [Please note the sequential order I am putting it in] each activity has an inter-relationship. I noticed that you are in sales and I am passionate about sales however to make sales the business model needs to speak to your advertising & branding. I have developed a business model over the last 2 and half years and marketing is in the centre of this business model which means I do not need to invest an enormous budget in advertising as the business model feeds “word of mouth” advertising which is the best and most effective advertising method in brand building and sales. The “driver” in the sales process is thus an effective and efficient business model.
As a hobby I also invest my time in subliminal advertising, social engineering and psychology, so much so, instead of me reading advertising books, I read books on psychology as I belief we selling a product and / service to a person and not to a company. I think I answered your question on how to improve your sales.
Best of luck with your sales. Oh! And sometimes to improve your sales you need to influence your company decision makers to make slight changes to the business model.
Take care,

Hi Hannes,
I have attended a few of your intro courses over the years, but nothing more. I need your guidance on something. I have cashed out all my policies and am sitting with about R3m in cash and unsure of what to do with it, except I know I need to generate an income and growth. Which of your courses do you suggest that I look at. I often get confused as you have so many courses.

Regarding the protective structuring of your properties. I understand that -for various reasons- it is in my best interest to purchase the correct free investment properties (IGR>FFGR) through a company. 100% of said company’s shares should be owned by a Living trust.

But I am unsure of who/what should/could be trustees and beneficiaries …and how the flow of money works so that SARS helps me.

Where can I obtain this information ?

Even better would be if it is at all possible for you to share a structured template of the most efficient way this could be set up 🙂

I have a company http://www.lemitechex.com which focuses on delivering engineering services on Transnet and Gibela Rail. My great concern is I’ve invested almost R9000 in this entity and it currently doesnt generate money for me.

Homleigh
I do not give any financial advice. I teach people how to do things for themselves.
I suggest that you attend one of my free Property The Road To Riches seminars to hear what I do and how I do it.
You can book your seat at http://seminars.hannesdreyer.com/

Good afternoon Hannes
I am 56 year young white female. I would like to make more money, this is my confusion. Have applied for a loan on my current townhouse, estimated bond outstanding 580K, estimated value 1.250 million. Do I take my 100K approved loan & buy a second property to rent, (can’t subsidize the rental income) or do I take the 100K loan & start a Nail & Beauty Boutique (fasting growing industry, I have been told), employing two staff members, to generate approximately R71K per month. I want to have made a million profit in 5 years. Please provide your expertise & provide some guidance on where I should invest my money.

Hi Dianne
I do not give any financial advice. I teach people how to do things for themselves.
I suggest that you attend one of my free Property The Road To Riches seminars to hear what I do and how I do it.
You can book your seat at http://seminars.hannesdreyer.com/
The trick is not to do something (even if it sound very good) if you do not have the competencies to offset the risk and improve the growth.

second rental property. ?
hi Hannes i have been following you and read rich dad books. My question is how do i get a second bond on a flat i bought , so i can get another flat. I do have some good equity as i put down a R100 000 deposit. do i need to rent my flat out,? and stay else where.

Peter I will suggest that you attend one of my free property seminars where I address that question. One of the biggest mistakes I see that “investors” make is to think that they should buy more and more properties. Remember it is the growth on the money that you invested that will make you rich so what is your IRR on your current property? And what will the IRR be on the next property? If you can answer those questions I will tell you what to do.

When you emphasized “I”, would this by any chance be related to the use of Trusts? 🙂

Also, do you teach students about Trusts in any of your seminars?

(I ask because I was introduced to your work a few days ago via a referral of someone to reach out to you for my questions about how to make use of trusts / using a trust as an entity & by me then completing your online introductory course to your work on the “WCU” to understand the work you do with more clarity, & I now have decided I would like to work with you to achieve my goals! & will be contacting your offices.) 🙂